Risky investment: Significant fluctuations in returns contribute to a high level of volatility

The Irish Pension Funding industry is relatively immature compared with those in other OECD countries. Additionally, the proportion of the workforce enrolled in some form of pension scheme is low. The industry has struggled over the past few years owing to poor investment returns. Industry revenue is expected to decline at a compound annual rate of 4.3% over the five years through 2019.Changing consumer preferences have induced a continued shift in demand from defined benefit (DB) schemes to defined contribution (DC) schemes over the past five years. Regulatory changes relating to reserve requirements for DB schemes and increased statistical reporting have increased compliance costs for firms during the period and slightly reduced investment returns...read more.

Industry Statistics & Market Size
Revenue
€14.6bn
Annual Growth 14-19
-4.3%
Forecast Growth 19-24
Profit
Employment
8,446
Businesses
69,617
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Weak investment returns have been detrimental to the industry's performance over the past five years
  • Industry revenue is extremely volatile due to the intrinsic instability of financial markets
  • The introduction of automatic pension enrolment is set to significantly increase revenue and AUM
  • Industry Report - Industry SWOT Analysis Chapter

    The Pension Funding industry is expected to be in the growth phase of its life cycle. Over the 10 years through 2024, industry value added (IVA), which measures the industry's contribution to Irish GDP, is expected to decrease at a compound annual rate of 0.5%. Meanwhile, the Irish economy is expected to grow at a compound annual rate of 6.1% over the same period. This indicates that the industry will account for a decreasing share of the overall Irish economy. However, IVA growth distorted by the high value of IVA during the base year of the period, 2014, due to strong investment returns during the year.The immaturity of the Irish Pension Funding industry is reflected through the average age of participating members. The...purchase to read more.

    Additional Insights for the Pension Funding Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pension Funding Industry are

  • Economies of scale
  • Economies of scope
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as MSCI World Index and ISEQ Index in the Pension Funding industry impact industry performance..

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    What's in this report

    What is the Pension Funding in Ireland Industry?

    The Pension Funding industry provides retirement benefits for people no longer earning an income. The industry includes both occupational and personal pension schemes. State pensions are excluded from this industry.

    Industry Products
  • Equities
  • Fixed-income assets
  • Real estate assets
  • Cash and deposits
  • Alternative assets
  • Industry Activities
  • Operating occupational pension schemes
  • Operating personal pension schemes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • MSCI World Index
  • ISEQ Index
  • National unemployment rate
  • Population aged 65 years and over
  • Gross household savings rate

  • Current Performance
    Industry compositionVolatile performanceRegulatory changesAssets under management
  • Chart: Revenue Growth

  • Industry Outlook
    Automatic enrolmentRegulatory requirementsSlowly maturing
  • Table: Pension Funding Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pension Funding Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Insurance Agents & Brokers in Ireland
  • Consumers in Ireland

  • Key Selling Industries
  • Fund Management Activities in Ireland
  • Insurance in Ireland

  • Products & Services
  • Equities
  • Fixed-income assets
  • Alternative assets
  • Cash and deposits
  • Real estate assets
  • Chart: Pension Funding Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Public occupational defined benefit schemes
  • Private occupational defined benefit schemes
  • Private occupational defined contribution schemes
  • Personal pension schemes
  • Chart: Major Market Segmentation for the Pension Funding Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Rent
  • Utilities
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Pension Funding

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pension Funding Industry

  • Industry Globalization
    Bank of Ireland Group plc,
  • Table: Bank of Ireland Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pension Funding Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pension Funding Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total Assets (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Total Liabilities (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Assets Under Management (Aum)
  • The total value of assets held by a given person, firm or industry.
  • Fair Value
  • The value obtained for assets when traded on common market places.
  • Fintech
  • Stands for financial technology. Technology that supports the operations of the financial sector, usually through automation.
  • Liquidity
  • The ease and speed at which an asset can be bought or sold.
  • Pension Liabilities
  • Traditionally liabilities are equal to the difference between obligations and assets. For this report however, liabilities refer to the total DB pension obligations plus assets of DC pension schemes.
  • Retail Investor
  • Individual investors with limited financial experience that purchases assets for person accounts and uses.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pension Funding in Ireland market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Pension Funding in Ireland:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pension Funding in Ireland market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pension Funding in Ireland, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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